Month: September 2015

So the scenario usually goes something like this.

1- The trigger – a discussion with someone has caused you to question how good your existing accountant really is. Your accountant takes a long time to get back to you, and when they do, it is sub-standard service. You meet an amazing accountant at a party, and think, why isn’t my accountant like this. Whatever the reason, there is always a trigger.

2 – The guilt period – You have usually already made up your mind, as the trigger is usually your mind telling you subconsciously that maybe it is time to move on. But the issue you are struggling through is this. You have known your accountant for X years. He/she knows everything about you. He/she knows your mum, dad, uncle, brother. You usually run into your accountant at the local IGA. This is what we call the guilt period. What we say to people that we meet in our discovery session is this – decide on who will provide you with the best and most tailored service, and then make it a business decision to move on. If you engaged your original accountant from an emotional perspective, then it is most likely the wrong choice to begin with. That’s not to say that they are bad accountants – they just may not be suitable for you or your business.

3 – The changeover – So then you have pushed through the guilt period, and have decided, YES – I am moving forward with this fantastic, wonderful new accountant. Next comes the transition. There can be a bit of pain through this process, and you may need to be involved in helping to pull together the information for the new accountant to understand where everything is at. The process of transition is usually a smooth one, if the emotion is left out of the process.

4 – The breakup – this is the stage that most clients dread, and is usually happening in conjunction with stage 3. Telling your existing accountant, that you want to break up, and that you want to move on. Now, there is no right or wrong to this, and it depends on your relationship with your accountant. How do you usually communicate? Is it once a year? Is it regularly? 

For some clients, there is no relationship. So we simply takeover, send the outgoing accountant an ethical clearance letter (this is a professional letter notifying them of the change), and everyone moves on. About 60% of the cases we have managed fall into this category.

For other clients, it is an emotional one. Think the isles of IGA, think kid’s birthday parties, think school functions etc. This one is a tricky one to navigate, and will be dependent on how truthful you want to be. All we say is – be honest, and be kind. Especially if it’s not because of anything the accountant did wrong. One suggestion is to state simply that it is time for you to find someone who has more experience or better fits your needs.  Always remember to thank your accountant for their work in the past as well. Because they did look after you, regardless of if it is to your level of expectations.

If you communicate with the outgoing accountant, let them know why (because it is the end of a relationship after all), then they will also have closure and be able to move on. A professional accountant should not react, as they would understand that people do move on, and that the needs of their clients do change. In fact, if your outgoing accountant gets mad, than that should reinforce your decision that you made the right decision (it is a sure sign that they lack the professionalism and experience you need.)

5 – The new relationship – after all is said and done, you are now in a new relationship with your accountant. and hopefully it is a lifelong one.

Change is always hard. But if you want your business to grow, or your property portfolio to be managed properly, and the accountant you are using is just not the RIGHT one, then you just have to move on. After all, if there is no growth, there is decline.

So the scenario usually goes something like this.

1- The trigger – a discussion with someone has caused you to question how good your existing accountant really is. Your accountant takes a long time to get back to you, and when they do, it is sub-standard service. You meet an amazing accountant at a party, and think, why isn’t my accountant like this. Whatever the reason, there is always a trigger.

2 – The guilt period – You have usually already made up your mind, as the trigger is usually your mind telling you subconsciously that maybe it is time to move on. But the issue you are struggling through is this. You have known your accountant for X years. He/she knows everything about you. He/she knows your mum, dad, uncle, brother. You usually run into your accountant at the local IGA. This is what we call the guilt period. What we say to people that we meet in our discovery session is this – decide on who will provide you with the best and most tailored service, and then make it a business decision to move on. If you engaged your original accountant from an emotional perspective, then it is most likely the wrong choice to begin with. That’s not to say that they are bad accountants – they just may not be suitable for you or your business.

3 – The changeover – So then you have pushed through the guilt period, and have decided, YES – I am moving forward with this fantastic, wonderful new accountant. Next comes the transition. There can be a bit of pain through this process, and you may need to be involved in helping to pull together the information for the new accountant to understand where everything is at. The process of transition is usually a smooth one, if the emotion is left out of the process.

4 – The breakup – this is the stage that most clients dread, and is usually happening in conjunction with stage 3. Telling your existing accountant, that you want to break up, and that you want to move on. Now, there is no right or wrong to this, and it depends on your relationship with your accountant. How do you usually communicate? Is it once a year? Is it regularly? 

For some clients, there is no relationship. So we simply takeover, send the outgoing accountant an ethical clearance letter (this is a professional letter notifying them of the change), and everyone moves on. About 60% of the cases we have managed fall into this category.

For other clients, it is an emotional one. Think the isles of IGA, think kid’s birthday parties, think school functions etc. This one is a tricky one to navigate, and will be dependent on how truthful you want to be. All we say is – be honest, and be kind. Especially if it’s not because of anything the accountant did wrong. One suggestion is to state simply that it is time for you to find someone who has more experience or better fits your needs.  Always remember to thank your accountant for their work in the past as well. Because they did look after you, regardless of if it is to your level of expectations.

If you communicate with the outgoing accountant, let them know why (because it is the end of a relationship after all), then they will also have closure and be able to move on. A professional accountant should not react, as they would understand that people do move on, and that the needs of their clients do change. In fact, if your outgoing accountant gets mad, than that should reinforce your decision that you made the right decision (it is a sure sign that they lack the professionalism and experience you need.)

5 – The new relationship – after all is said and done, you are now in a new relationship with your accountant. and hopefully it is a lifelong one.

Change is always hard. But if you want your business to grow, or your property portfolio to be managed properly, and the accountant you are using is just not the RIGHT one, then you just have to move on. After all, if there is no growth, there is decline.

So the scenario usually goes something like this.

1- The trigger – a discussion with someone has caused you to question how good your existing accountant really is. Your accountant takes a long time to get back to you, and when they do, it is sub-standard service. You meet an amazing accountant at a party, and think, why isn’t my accountant like this. Whatever the reason, there is always a trigger.

2 – The guilt period – You have usually already made up your mind, as the trigger is usually your mind telling you subconsciously that maybe it is time to move on. But the issue you are struggling through is this. You have known your accountant for X years. He/she knows everything about you. He/she knows your mum, dad, uncle, brother. You usually run into your accountant at the local IGA. This is what we call the guilt period. What we say to people that we meet in our discovery session is this – decide on who will provide you with the best and most tailored service, and then make it a business decision to move on. If you engaged your original accountant from an emotional perspective, then it is most likely the wrong choice to begin with. That’s not to say that they are bad accountants – they just may not be suitable for you or your business.

3 – The changeover – So then you have pushed through the guilt period, and have decided, YES – I am moving forward with this fantastic, wonderful new accountant. Next comes the transition. There can be a bit of pain through this process, and you may need to be involved in helping to pull together the information for the new accountant to understand where everything is at. The process of transition is usually a smooth one, if the emotion is left out of the process.

4 – The breakup – this is the stage that most clients dread, and is usually happening in conjunction with stage 3. Telling your existing accountant, that you want to break up, and that you want to move on. Now, there is no right or wrong to this, and it depends on your relationship with your accountant. How do you usually communicate? Is it once a year? Is it regularly? 

For some clients, there is no relationship. So we simply takeover, send the outgoing accountant an ethical clearance letter (this is a professional letter notifying them of the change), and everyone moves on. About 60% of the cases we have managed fall into this category.

For other clients, it is an emotional one. Think the isles of IGA, think kid’s birthday parties, think school functions etc. This one is a tricky one to navigate, and will be dependent on how truthful you want to be. All we say is – be honest, and be kind. Especially if it’s not because of anything the accountant did wrong. One suggestion is to state simply that it is time for you to find someone who has more experience or better fits your needs.  Always remember to thank your accountant for their work in the past as well. Because they did look after you, regardless of if it is to your level of expectations.

If you communicate with the outgoing accountant, let them know why (because it is the end of a relationship after all), then they will also have closure and be able to move on. A professional accountant should not react, as they would understand that people do move on, and that the needs of their clients do change. In fact, if your outgoing accountant gets mad, than that should reinforce your decision that you made the right decision (it is a sure sign that they lack the professionalism and experience you need.)

5 – The new relationship – after all is said and done, you are now in a new relationship with your accountant. and hopefully it is a lifelong one.

Change is always hard. But if you want your business to grow, or your property portfolio to be managed properly, and the accountant you are using is just not the RIGHT one, then you just have to move on. After all, if there is no growth, there is decline.

So the scenario usually goes something like this.

1- The trigger – a discussion with someone has caused you to question how good your existing accountant really is. Your accountant takes a long time to get back to you, and when they do, it is sub-standard service. You meet an amazing accountant at a party, and think, why isn’t my accountant like this. Whatever the reason, there is always a trigger.

2 – The guilt period – You have usually already made up your mind, as the trigger is usually your mind telling you subconsciously that maybe it is time to move on. But the issue you are struggling through is this. You have known your accountant for X years. He/she knows everything about you. He/she knows your mum, dad, uncle, brother. You usually run into your accountant at the local IGA. This is what we call the guilt period. What we say to people that we meet in our discovery session is this – decide on who will provide you with the best and most tailored service, and then make it a business decision to move on. If you engaged your original accountant from an emotional perspective, then it is most likely the wrong choice to begin with. That’s not to say that they are bad accountants – they just may not be suitable for you or your business.

3 – The changeover – So then you have pushed through the guilt period, and have decided, YES – I am moving forward with this fantastic, wonderful new accountant. Next comes the transition. There can be a bit of pain through this process, and you may need to be involved in helping to pull together the information for the new accountant to understand where everything is at. The process of transition is usually a smooth one, if the emotion is left out of the process.

4 – The breakup – this is the stage that most clients dread, and is usually happening in conjunction with stage 3. Telling your existing accountant, that you want to break up, and that you want to move on. Now, there is no right or wrong to this, and it depends on your relationship with your accountant. How do you usually communicate? Is it once a year? Is it regularly? 

For some clients, there is no relationship. So we simply takeover, send the outgoing accountant an ethical clearance letter (this is a professional letter notifying them of the change), and everyone moves on. About 60% of the cases we have managed fall into this category.

For other clients, it is an emotional one. Think the isles of IGA, think kid’s birthday parties, think school functions etc. This one is a tricky one to navigate, and will be dependent on how truthful you want to be. All we say is – be honest, and be kind. Especially if it’s not because of anything the accountant did wrong. One suggestion is to state simply that it is time for you to find someone who has more experience or better fits your needs.  Always remember to thank your accountant for their work in the past as well. Because they did look after you, regardless of if it is to your level of expectations.

If you communicate with the outgoing accountant, let them know why (because it is the end of a relationship after all), then they will also have closure and be able to move on. A professional accountant should not react, as they would understand that people do move on, and that the needs of their clients do change. In fact, if your outgoing accountant gets mad, than that should reinforce your decision that you made the right decision (it is a sure sign that they lack the professionalism and experience you need.)

5 – The new relationship – after all is said and done, you are now in a new relationship with your accountant. and hopefully it is a lifelong one.

Change is always hard. But if you want your business to grow, or your property portfolio to be managed properly, and the accountant you are using is just not the RIGHT one, then you just have to move on. After all, if there is no growth, there is decline.

So the scenario usually goes something like this.

1- The trigger – a discussion with someone has caused you to question how good your existing accountant really is. Your accountant takes a long time to get back to you, and when they do, it is sub-standard service. You meet an amazing accountant at a party, and think, why isn’t my accountant like this. Whatever the reason, there is always a trigger.

2 – The guilt period – You have usually already made up your mind, as the trigger is usually your mind telling you subconsciously that maybe it is time to move on. But the issue you are struggling through is this. You have known your accountant for X years. He/she knows everything about you. He/she knows your mum, dad, uncle, brother. You usually run into your accountant at the local IGA. This is what we call the guilt period. What we say to people that we meet in our discovery session is this – decide on who will provide you with the best and most tailored service, and then make it a business decision to move on. If you engaged your original accountant from an emotional perspective, then it is most likely the wrong choice to begin with. That’s not to say that they are bad accountants – they just may not be suitable for you or your business.

3 – The changeover – So then you have pushed through the guilt period, and have decided, YES – I am moving forward with this fantastic, wonderful new accountant. Next comes the transition. There can be a bit of pain through this process, and you may need to be involved in helping to pull together the information for the new accountant to understand where everything is at. The process of transition is usually a smooth one, if the emotion is left out of the process.

4 – The breakup – this is the stage that most clients dread, and is usually happening in conjunction with stage 3. Telling your existing accountant, that you want to break up, and that you want to move on. Now, there is no right or wrong to this, and it depends on your relationship with your accountant. How do you usually communicate? Is it once a year? Is it regularly? 

For some clients, there is no relationship. So we simply takeover, send the outgoing accountant an ethical clearance letter (this is a professional letter notifying them of the change), and everyone moves on. About 60% of the cases we have managed fall into this category.

For other clients, it is an emotional one. Think the isles of IGA, think kid’s birthday parties, think school functions etc. This one is a tricky one to navigate, and will be dependent on how truthful you want to be. All we say is – be honest, and be kind. Especially if it’s not because of anything the accountant did wrong. One suggestion is to state simply that it is time for you to find someone who has more experience or better fits your needs.  Always remember to thank your accountant for their work in the past as well. Because they did look after you, regardless of if it is to your level of expectations.

If you communicate with the outgoing accountant, let them know why (because it is the end of a relationship after all), then they will also have closure and be able to move on. A professional accountant should not react, as they would understand that people do move on, and that the needs of their clients do change. In fact, if your outgoing accountant gets mad, than that should reinforce your decision that you made the right decision (it is a sure sign that they lack the professionalism and experience you need.)

5 – The new relationship – after all is said and done, you are now in a new relationship with your accountant. and hopefully it is a lifelong one.

Change is always hard. But if you want your business to grow, or your property portfolio to be managed properly, and the accountant you are using is just not the RIGHT one, then you just have to move on. After all, if there is no growth, there is decline.

1 – Thou Shall Focus on the Numbers
Buying with your heart and becoming emotionally attached – property investment should be about the numbers, nothing more, nothing less. The property you purchase for investment should give you good yields, and should be in an area with good growth. It should not be a property that you like the look of, or that you can see your kids living in, etc. You would be surprised with the strange reasons that people come up with as to why they selected that particular property.

The property should be close to schools, close to transport, complete with durable, hard wearing finishings. You want to rent this property for as long as possible and with as little effort as possible.

2 – Thou Shall Not Be Friends With Thy Tenants
This is a big no no. The best result is to have an agent manage your property. If this is not possible for whatever reason, then keep it simple, respectful and courteous. Always draw the boundaries. Blurring the relationship between landlord and tenant can cause you intense grief, and you do not need that.

3 – Thou Shall Avoid Renting to Family and Friends
If you are doing this as part of your charitable works, then go right ahead. But no matter what, expect it to come with some issues. This is the case even if you have proper documents in place.
We have had clients rent to family and did not have the courage to increase the rent to market value.
Others decide to repair the property themselves, much to the horror of their landlord.

4 – Thou Shall NOT Become an FBI Agent
First time property investors love to spy on their tenants. It is their new little investment and they want to see that their property is being looked after.
If your tenants catches on, they will be spooked.
This is why we advocate for a real estate agent to manage your property. They become your spy!

5 – Thou Shall Ask for Help
Let’s face it, it is your first time in the property market. Ask for tips from your accountant. Ask for advice from your solicitor. If you do not feel comfortable doing so, then it is time to change either one or both. You should have a property network of professionals around you that will guide you on your journey.

Your accountant can help you plan, crunch the numbers for you and assist you in every step of the process. Buying an investment property is like buying a business – would you do that unassisted and unplanned? Likewise, the same goes with property purchases! Your accountant will also tell you if you are buying emotionally, or committing any of the 8 deadly sins.

6 – Thou Shall Keep the Investment in Good Working Order
We work with many property managers. One of their biggest gripe is when first time investors refuse to repair or upgrade when it is needed. When things need fixing, it should be fixed. When a property is looking run down, it should be given a new lick of paint. This maintains the value of your property, and makes it easily marketed and tenanted.
Do not try to save money by ignoring the upkeep of your investment property.

7 – Thou Shall Keep Up with Market Rent
You ultimately want the best return on your investment, as this is the whole purpose of buying an investment property. So keep an eye on the rental market, and review your rent regularly. If you have your property managed by an agent, even better. They will tell you when it is time to increase the rent. Not having the problem with Deadly Sin #3 helps with this commandment!

8 – Thou Shall Always Look At Getting Depreciation Reports
We do see the odd investor who, for whatever reason, refuses to get a depreciation schedule prepared professionally. Despite the possibility of saving them thousands in tax, many landlords just do not appreciate the concept of depreciation.

1 – Thou Shall Focus on the Numbers
Buying with your heart and becoming emotionally attached – property investment should be about the numbers, nothing more, nothing less. The property you purchase for investment should give you good yields, and should be in an area with good growth. It should not be a property that you like the look of, or that you can see your kids living in, etc. You would be surprised with the strange reasons that people come up with as to why they selected that particular property.

The property should be close to schools, close to transport, complete with durable, hard wearing finishings. You want to rent this property for as long as possible and with as little effort as possible.

2 – Thou Shall Not Be Friends With Thy Tenants
This is a big no no. The best result is to have an agent manage your property. If this is not possible for whatever reason, then keep it simple, respectful and courteous. Always draw the boundaries. Blurring the relationship between landlord and tenant can cause you intense grief, and you do not need that.

3 – Thou Shall Avoid Renting to Family and Friends
If you are doing this as part of your charitable works, then go right ahead. But no matter what, expect it to come with some issues. This is the case even if you have proper documents in place.
We have had clients rent to family and did not have the courage to increase the rent to market value.
Others decide to repair the property themselves, much to the horror of their landlord.

4 – Thou Shall NOT Become an FBI Agent
First time property investors love to spy on their tenants. It is their new little investment and they want to see that their property is being looked after.
If your tenants catches on, they will be spooked.
This is why we advocate for a real estate agent to manage your property. They become your spy!

5 – Thou Shall Ask for Help
Let’s face it, it is your first time in the property market. Ask for tips from your accountant. Ask for advice from your solicitor. If you do not feel comfortable doing so, then it is time to change either one or both. You should have a property network of professionals around you that will guide you on your journey.

Your accountant can help you plan, crunch the numbers for you and assist you in every step of the process. Buying an investment property is like buying a business – would you do that unassisted and unplanned? Likewise, the same goes with property purchases! Your accountant will also tell you if you are buying emotionally, or committing any of the 8 deadly sins.

6 – Thou Shall Keep the Investment in Good Working Order
We work with many property managers. One of their biggest gripe is when first time investors refuse to repair or upgrade when it is needed. When things need fixing, it should be fixed. When a property is looking run down, it should be given a new lick of paint. This maintains the value of your property, and makes it easily marketed and tenanted.
Do not try to save money by ignoring the upkeep of your investment property.

7 – Thou Shall Keep Up with Market Rent
You ultimately want the best return on your investment, as this is the whole purpose of buying an investment property. So keep an eye on the rental market, and review your rent regularly. If you have your property managed by an agent, even better. They will tell you when it is time to increase the rent. Not having the problem with Deadly Sin #3 helps with this commandment!

8 – Thou Shall Always Look At Getting Depreciation Reports
We do see the odd investor who, for whatever reason, refuses to get a depreciation schedule prepared professionally. Despite the possibility of saving them thousands in tax, many landlords just do not appreciate the concept of depreciation.

1 – Thou Shall Focus on the Numbers
Buying with your heart and becoming emotionally attached – property investment should be about the numbers, nothing more, nothing less. The property you purchase for investment should give you good yields, and should be in an area with good growth. It should not be a property that you like the look of, or that you can see your kids living in, etc. You would be surprised with the strange reasons that people come up with as to why they selected that particular property.

The property should be close to schools, close to transport, complete with durable, hard wearing finishings. You want to rent this property for as long as possible and with as little effort as possible.

2 – Thou Shall Not Be Friends With Thy Tenants
This is a big no no. The best result is to have an agent manage your property. If this is not possible for whatever reason, then keep it simple, respectful and courteous. Always draw the boundaries. Blurring the relationship between landlord and tenant can cause you intense grief, and you do not need that.

3 – Thou Shall Avoid Renting to Family and Friends
If you are doing this as part of your charitable works, then go right ahead. But no matter what, expect it to come with some issues. This is the case even if you have proper documents in place.
We have had clients rent to family and did not have the courage to increase the rent to market value.
Others decide to repair the property themselves, much to the horror of their landlord.

4 – Thou Shall NOT Become an FBI Agent
First time property investors love to spy on their tenants. It is their new little investment and they want to see that their property is being looked after.
If your tenants catches on, they will be spooked.
This is why we advocate for a real estate agent to manage your property. They become your spy!

5 – Thou Shall Ask for Help
Let’s face it, it is your first time in the property market. Ask for tips from your accountant. Ask for advice from your solicitor. If you do not feel comfortable doing so, then it is time to change either one or both. You should have a property network of professionals around you that will guide you on your journey.

Your accountant can help you plan, crunch the numbers for you and assist you in every step of the process. Buying an investment property is like buying a business – would you do that unassisted and unplanned? Likewise, the same goes with property purchases! Your accountant will also tell you if you are buying emotionally, or committing any of the 8 deadly sins.

6 – Thou Shall Keep the Investment in Good Working Order
We work with many property managers. One of their biggest gripe is when first time investors refuse to repair or upgrade when it is needed. When things need fixing, it should be fixed. When a property is looking run down, it should be given a new lick of paint. This maintains the value of your property, and makes it easily marketed and tenanted.
Do not try to save money by ignoring the upkeep of your investment property.

7 – Thou Shall Keep Up with Market Rent
You ultimately want the best return on your investment, as this is the whole purpose of buying an investment property. So keep an eye on the rental market, and review your rent regularly. If you have your property managed by an agent, even better. They will tell you when it is time to increase the rent. Not having the problem with Deadly Sin #3 helps with this commandment!

8 – Thou Shall Always Look At Getting Depreciation Reports
We do see the odd investor who, for whatever reason, refuses to get a depreciation schedule prepared professionally. Despite the possibility of saving them thousands in tax, many landlords just do not appreciate the concept of depreciation.

1 – Thou Shall Focus on the Numbers
Buying with your heart and becoming emotionally attached – property investment should be about the numbers, nothing more, nothing less. The property you purchase for investment should give you good yields, and should be in an area with good growth. It should not be a property that you like the look of, or that you can see your kids living in, etc. You would be surprised with the strange reasons that people come up with as to why they selected that particular property.

The property should be close to schools, close to transport, complete with durable, hard wearing finishings. You want to rent this property for as long as possible and with as little effort as possible.

2 – Thou Shall Not Be Friends With Thy Tenants
This is a big no no. The best result is to have an agent manage your property. If this is not possible for whatever reason, then keep it simple, respectful and courteous. Always draw the boundaries. Blurring the relationship between landlord and tenant can cause you intense grief, and you do not need that.

3 – Thou Shall Avoid Renting to Family and Friends
If you are doing this as part of your charitable works, then go right ahead. But no matter what, expect it to come with some issues. This is the case even if you have proper documents in place.
We have had clients rent to family and did not have the courage to increase the rent to market value.
Others decide to repair the property themselves, much to the horror of their landlord.

4 – Thou Shall NOT Become an FBI Agent
First time property investors love to spy on their tenants. It is their new little investment and they want to see that their property is being looked after.
If your tenants catches on, they will be spooked.
This is why we advocate for a real estate agent to manage your property. They become your spy!

5 – Thou Shall Ask for Help
Let’s face it, it is your first time in the property market. Ask for tips from your accountant. Ask for advice from your solicitor. If you do not feel comfortable doing so, then it is time to change either one or both. You should have a property network of professionals around you that will guide you on your journey.

Your accountant can help you plan, crunch the numbers for you and assist you in every step of the process. Buying an investment property is like buying a business – would you do that unassisted and unplanned? Likewise, the same goes with property purchases! Your accountant will also tell you if you are buying emotionally, or committing any of the 8 deadly sins.

6 – Thou Shall Keep the Investment in Good Working Order
We work with many property managers. One of their biggest gripe is when first time investors refuse to repair or upgrade when it is needed. When things need fixing, it should be fixed. When a property is looking run down, it should be given a new lick of paint. This maintains the value of your property, and makes it easily marketed and tenanted.
Do not try to save money by ignoring the upkeep of your investment property.

7 – Thou Shall Keep Up with Market Rent
You ultimately want the best return on your investment, as this is the whole purpose of buying an investment property. So keep an eye on the rental market, and review your rent regularly. If you have your property managed by an agent, even better. They will tell you when it is time to increase the rent. Not having the problem with Deadly Sin #3 helps with this commandment!

8 – Thou Shall Always Look At Getting Depreciation Reports
We do see the odd investor who, for whatever reason, refuses to get a depreciation schedule prepared professionally. Despite the possibility of saving them thousands in tax, many landlords just do not appreciate the concept of depreciation.

1 – Thou Shall Focus on the Numbers
Buying with your heart and becoming emotionally attached – property investment should be about the numbers, nothing more, nothing less. The property you purchase for investment should give you good yields, and should be in an area with good growth. It should not be a property that you like the look of, or that you can see your kids living in, etc. You would be surprised with the strange reasons that people come up with as to why they selected that particular property.

The property should be close to schools, close to transport, complete with durable, hard wearing finishings. You want to rent this property for as long as possible and with as little effort as possible.

2 – Thou Shall Not Be Friends With Thy Tenants
This is a big no no. The best result is to have an agent manage your property. If this is not possible for whatever reason, then keep it simple, respectful and courteous. Always draw the boundaries. Blurring the relationship between landlord and tenant can cause you intense grief, and you do not need that.

3 – Thou Shall Avoid Renting to Family and Friends
If you are doing this as part of your charitable works, then go right ahead. But no matter what, expect it to come with some issues. This is the case even if you have proper documents in place.
We have had clients rent to family and did not have the courage to increase the rent to market value.
Others decide to repair the property themselves, much to the horror of their landlord.

4 – Thou Shall NOT Become an FBI Agent
First time property investors love to spy on their tenants. It is their new little investment and they want to see that their property is being looked after.
If your tenants catches on, they will be spooked.
This is why we advocate for a real estate agent to manage your property. They become your spy!

5 – Thou Shall Ask for Help
Let’s face it, it is your first time in the property market. Ask for tips from your accountant. Ask for advice from your solicitor. If you do not feel comfortable doing so, then it is time to change either one or both. You should have a property network of professionals around you that will guide you on your journey.

Your accountant can help you plan, crunch the numbers for you and assist you in every step of the process. Buying an investment property is like buying a business – would you do that unassisted and unplanned? Likewise, the same goes with property purchases! Your accountant will also tell you if you are buying emotionally, or committing any of the 8 deadly sins.

6 – Thou Shall Keep the Investment in Good Working Order
We work with many property managers. One of their biggest gripe is when first time investors refuse to repair or upgrade when it is needed. When things need fixing, it should be fixed. When a property is looking run down, it should be given a new lick of paint. This maintains the value of your property, and makes it easily marketed and tenanted.
Do not try to save money by ignoring the upkeep of your investment property.

7 – Thou Shall Keep Up with Market Rent
You ultimately want the best return on your investment, as this is the whole purpose of buying an investment property. So keep an eye on the rental market, and review your rent regularly. If you have your property managed by an agent, even better. They will tell you when it is time to increase the rent. Not having the problem with Deadly Sin #3 helps with this commandment!

8 – Thou Shall Always Look At Getting Depreciation Reports
We do see the odd investor who, for whatever reason, refuses to get a depreciation schedule prepared professionally. Despite the possibility of saving them thousands in tax, many landlords just do not appreciate the concept of depreciation.